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India’s Bosch posts Q3 profit climb on healthy auto parts demand
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BENGALURU (Reuters) – Bosch, the Indian arm of German automotive supplier Robert Bosch GmbH, reported a 62.5% climb in third-quarter profit on Tuesday, buoyed by strong demand for its automotive parts.
BENGALURU (Reuters) – Bosch, the Indian arm of German automotive supplier Robert Bosch GmbH, reported a 62.5% climb in third-quarter profit on Tuesday, buoyed by strong demand for its automotive parts.
The company’s net profit rose year-on-year to 5.18 billion rupees ($62.4 million) in the three months to Dec. 31.
Bosch makes auto parts such as braking systems and batteries, and also has a powertrain business that provides exhaust gas treatment components.
The auto components and train businesses are clubbed under what the company calls “automotive products”, which accounts for more than 86% of total revenue.
Demand for auto parts shot up as vehicle production jumped 21% year-on-year in the quarter, according to data from industry body Society of Indian Automobile Manufacturers.
As a result, revenue from the automotive products segment climbed almost 13%, driving total revenue up almost 15% to 42.05 billion rupees.
This helped outpace the company’s 11% rise in total expenses. Raw material costs jumped 16% as the global prices of some metals, including steel, rose in the quarter on aggressive demand from China.
The company also had a one-time item of 588 million rupees in the quarter as a reversed provision relating to regulatory changes for some emission rules in India.
Its profit before exceptional items and taxes rose 44% year-on-year.
($1 = 82.9870 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Janane Venkatraman)
Net profit is the amount of money a company earns after all expenses, taxes, and costs have been deducted from total revenue. It is an important indicator of a company's profitability.
Automotive parts are components used in the manufacturing and repair of vehicles. This includes items like engines, brakes, batteries, and transmission systems.
Revenue is the total amount of money generated by a company's business activities, typically from sales of goods or services before any expenses are deducted.
Raw material costs refer to the expenses incurred for the basic materials used in the production of goods. These costs can fluctuate based on market demand and supply.
Profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold. It indicates how well a company controls its costs relative to its sales.
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